IRFA, introduced in the House by Jason Chaffetz (R-UT), proposes that royalty rates for webcasters such as Pandora should be calculated based on the standard employed for satellite radio. This would likely lead to a considerable reduction in artist compensation, although it would certainly help the bottom line of larger webcasters such as Pandora.

Interim FIRST, introduced by Jerrold Nadler (D-NY), would essentially do the reverse, applying the current webcasting radio royalty-setting standard to cable and satellite radio. Under this plan, broadcast radio would also be subjected to raised rates for their digital simulcasts to make up for the fact that they pay nothing to performers and labels for their over-the-air broadcasts. All fine and good, but this approach doesn’t address the millions of dollars left on the table when American performers are played on terrestrial radio overseas. (Almost every country except the US has a public performance right for over-the-air broadcasting.)

FMC submitted written testimony for the congressional record. We’re also launching the Rising Tides: Envisioning Fair Internet Radio campaign, which outlines seven key points for musicians and advocates to defend in the fight for true fairness — for artists and broadcasters — with respect to royalty rates. It is important for musicians, advocates, and other members of the creative community to get informed and stay engaged as these issues are hashed out. Rising Tides is a great place to start to learn what’s at stake in the webcasting rates debate.